USD/CAD Price Analysis: The pair has broken lower as global sentiment improves and oil prices rise

• USD/CAD trades 0.30% lower on a bad day for the greenback.
• Oil prices have also risen and so has the overall risk sentiment.

USD/CAD 4-hour chart

USD/CAD has now broken lower and is testing a key trendline on the 4-hour. This is largely due to the change in risk sentiment this session and a bounce back in oil prices. The change in sentiment has come after Donald Trump's medical condition improved after his admission into hospital following his COVID-19 diagnosis.

The price has dipped below the black upward sloping trendline but there is another support level in the way. The red line at 1.3238 is now key as this was the consolidation top that the price broke out of recently. Below that, there is another support level at the green line near 1.3150. 

On the topside, if the price does increase again the wave high of 1.3421 could be the next target for the bulls. This would then mean the bull trend is back on and the sequence of higher highs and higher lows would continue. 

The indicators are telling a very bearish picture. The MACD histogram and signal lines are under the zero level. The Relative Strength Index is also falling and just nearly touching the oversold zone. 

The overall trend is still moving in a downward direction on the higher timeframes. This recent move could just be a deep retracement and a break of the aforementioned support areas could confirm this.  

Additional levels